+BUSINESS PROCESS REENGINEERING OF A COMPANY AT THE STAGE OF THE STRATEGIC GROWTH

+Goal and Subject of Research

• Goal of research: conceptual framework

development of fundamental and radical changeover

in connection with process approach in order to

refocus the business to an ultimate consumer.

• Subject of research: academic, methodological and

practical aspects of business-process reengineering

implementation.

+Target of Research & Research Task• Target of research: business-processes of OOO «Group

«Pracsis»

• Research task: To enquire into theoretical issues of business-process

reengineering; To analyze the existing network of business-processes of a

company; To suggest a new order of business processes for a company; To summarise the effect of business-process reengineering for a

company.

+Plan

• I. Theoretical Issues of BPR

• II. International Practices of BPR

• Ford Motor Company

• OOO “Pracsis”

• Magazine Edition Process

• Financial Processes

• III. Summary

“Reengineering must be initiated . . . by someone who has . . . enough status to break legs.»

Planning Review, May/June 1993

+What is Business-Process Reengineering?• Reengineering is the FUNDAMENTAL RETHINKING and redesign of

BUSINESS PROCESSES to achieve DRAMATIC IMPROVEMENTS in critical, contemporary measures of performance, such as cost, quality, service and speed.

(Hammer & Champy, 1993)

+Collision between BPR & Other Concepts

BPR

RadicalRebuild

Greater FocusHigh Investment

Limited Number of Initiatives

Process Simplification

Incremental Improve Existing

Process FocusLow Investment

Various Simultaneous Projects

Continuous Improvement

IncrementalImprove Existing

People FocusLow InvestmentWork Unit Driven

(Source Coulson-Thomas, 1992)

+Key Steps of BPR

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan

+Ford Motor Company Before

Department of Accounts

PayableSupplier

Procurement Department

Department of Reception

of Goods

1. Purchase Order

 

1. Sales Order Copy

2. Receipt

2. Goods3. Form of Acceptance

+Ford Motor Company After

Online Database

Supplier

Payment Process

Receiving Process

Ordering Process Purchase Order

Goods

Payment

+‘Enemies’ and ‘Allies’ of BPR in Russia

Strong hierarchical order

Contradiction between private

and public interests

Business owners’ narrow-

mindedness

Crisis

Numerous opportunities for

benchmarking

Multiskilled personnel

‘Enemies’ ‘Allies’

+OOO “Pracsis”

Editor in Chief Journalist 

Literary Editor

 Magazine

Plan

Writing an ArticleAgreement

on the Article

Literary Edit

Tasks for Journalists

Agreed?No

Yes

+

Performance Quality Review

Payment Process

Invoice Collection

Invoice Approval

Head of the Company

Chief Accountant

Financial Department

Invoice Reception

Invoice Collection

Verification

Current Assets – Approval - Payment

Payment Plan

Cash Flow Analysis

Payment NotificationPayment

NotificationPayments’ Status

Request

Operating Accountant

Prioritisation

Payment Made?

+Conclusions on the analysis of existing financial activities

System of payment planning is missing:

Liquidity crisis

Payment prioritising fallacy

Payment control – accounting department. Debt

financing – financial department

Constant requisite payment process monitoring

+Invoice Collection

Budget Forming

Payment Process 

Head of the

Company

Financial Departme

nt

Accounts Departme

nt

Invoice Reception

Prioritising

VerificationPayment Plan Development

Current Assets - Approval

Lack of Current Assets

– External Financing

Payment Plan Approval

Payment Process

Performance Quality Review

Payment Notiification

Cash Flow Analysis

Payments’ Status Report

+Conclusions on the analysis of existing financial activities of OOO ‘Pracsis’ Payment control – financial department

(planning,debt financing planning)

Suggestions:

Payment planning system

System of payment prioritising

System of payment status notification for the parties

concerned

+Summary

• Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements

• Rules and symbols play an integral part of all BPR initiatives

• Reengineering in Russia has its peculiarities

• Everything in the world changes. The only thing that doesn’t change is a ‘change’ itself.

+Thank You for Your Attention

Questions, please!